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Social Commerce and SME Competitiveness in the Fashion Industry: Insights from an Emerging Market

Open Access
|Sep 2025

Figures & Tables

Figure 1.

Conceptual framework
Source: own processing
Conceptual framework Source: own processing

Path coefficients

PathPath coefficientT-StatisticsP-Values
Pro growth penetration strategy → Sales network power0.1752.3500.0190.465
Transactive memory system → Sales network power0.1551.9770.0400.465
Sales network power → Sales performance0.1101.4290.1540.377
Pro growth penetration strategy → Sales performance0.2333.4920.0010.377
Transactive memory system → Pro growth penetration strategy0.1802.4620.0140.342
Social commerce investment → Pro growth penetration strategy0.1251.7710.0770.342

Key characteristics of e-commerce and social commerce

Aspecte-CommerceS-Commerce
Promotion SystemCentralized by the platformHandled by sellers, content-based and driven by affiliates/influencers
Promotion CostOften shared with the platformFully borne by sellers (endorsement fees, content production, advertising)
Influencer RequirementNot mandatoryOften, a key success factor (live streaming, product reviews, affiliate marketing)
Type of Promotional ContentImages, product descriptions, and tex-tbased promotionsShort videos, live streaming, and real-time interaction
Consumer EngagementPassive, more transactionalActive, emotional, driven by relationships and entertainment
Time & HR InvestmentRelatively low, manageable by individualsHigh requires a dedicated team for content, live sessions, and customer engagement
Promotion ScalabilityLimited by the search algorithmHigh if the content goes viral or receives algorithmic support from the platform
Sales SystemStatic relies on consumer searchDynamic, can happen instantly during content exposure

Convergent validity and reliability results

ConstructsLoadingsAVECronbach's AlphaComposite Reliability
Social commerce Investment (ElAydi, 2018) 0.7370.8820.918
SCI1: We create and maintain an online community around our fashion brand.0.824
SCI2: We often share photos or videos of our fashion products on social media.0.890
SCI3: We collaborate with influencers to improve the credibility of our brand.0.894
Pro-Growth Penetration Strategy (Goeyardi et al., 2022; Umniyyatul & Aprianingsih, 2023) 0.6190.7290.866
PPS1: We offer competitive pricing strategies to attract new customers.0.849
PPS2: We develop new product variants to meet customer needs.0.722
PPS3: We optimize distribution channels to reach wider audiences.0.720
PPS4: We promote our fashion brand consistently through online marketing channels.0.845
Sales performance (Komunda et al., 2023; Shapiro & Gómez, 2014) 0.6140.7010.714
SP1: The number of units sold has increased.0.800
SP2: Our sales revenue keeps growing.0.751
SP3: More customers choose our products over competitors.0.799
Transactive memory system (Nawata et al., 2020) 0.6220.7130.739
TMS1: Our team knows who has expertise in specific areas.0.806
TMS2: We share a clear understanding of who is responsible for which tasks.0.830
TMS3: Team members know whom to ask when they need support or information.0.726
Sales network power (Ferdinand & Zuhroh, 2022) 0.6210.6990.767
SNP1: We are always good at the speed of delivery to our customers.0.709
SNP2: We are more attractive to our business partners in our business network.0.890
SNP3: We are both dependent on the other to be successful.0.754

Collinearity results

PathVIF
Pro growth penetration strategy → Sales network power1.038
Pro growth penetration strategy → Sales performance1.044
Sales network power → Sales performance1.040
Social commerce investment → Pro growth penetration strategy1.006
Transactive memory system → Pro growth penetration strategy1.007
Transactive memory system → Sales network power1.035

Discriminant validity (Fornell-Larcker)

ConstructsPPSSNPSPSCITMS
PPS0.787----
SNP0.2040.788---
SP0.2550.1570.784--
SCI0.1400.1900.0470.858-
TMS0.1910.1880.1490.0820.786
DOI: https://doi.org/10.2478/mdke-2025-0016 | Journal eISSN: 2392-8042 | Journal ISSN: 2286-2668
Language: English
Page range: 283 - 300
Submitted on: Jul 10, 2025
Accepted on: Aug 18, 2025
Published on: Sep 26, 2025
Published by: Scoala Nationala de Studii Politice si Administrative
In partnership with: Paradigm Publishing Services
Publication frequency: 4 times per year

© 2025 Hery GUNAWAN, Paulina Mego LISTIYANI, published by Scoala Nationala de Studii Politice si Administrative
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.